Main reasons to commence your Bordon lease extension

Main reasons to start your Bordon lease extension today:

A Bordon leasehold property depreciates with the years remaining on the lease.

Bordon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Bordon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bordon you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

Bordon property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders may decide not to grant a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will be problematic when you wish to sell or refinance your flat as it will be practically unmortgageable. Even though you might not have an imminent desire to sell but when you do your purchaser will need to wait a couple of years before they can exercise the right to a a lease extension.

Get in touch with one of our Bordon lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Bordon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bordon valuers.

Bordon Lease Extension Case Studies:

Harriet, Bordon, Hampshire,

Following unsuccessful discussions with the freeholder of her leasehold apartment in Bordon, Harriet commenced the lease extension process just as her lease was approaching the critical 80-year mark. The transaction completed in January 2010. The landlord’s costs were kept to an absolute minimum.

Bordon case:

Mrs Lydia Evans acquired a first floor flat in Bordon in September 2002. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Bordon with an extended lease were valued about £264,000. The mid-range ground rent payable was £60 collected per annum. The lease termination date was on 28 May 2079. Given that there were 53 years outstanding we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including expenses.

Bordon case:

Last Summer we were approach by Mr and Mrs. W Gómez , who acquired a purpose-built flat in Bordon in August 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical properties in Bordon with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected annually. The lease concluded in 2090. Taking into account 64 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.